Handique seeks continuation of 50pc duty waiver for refineries

In a letter to the FM, Handique also cited the slackening demand of the oil products, logistics-cost and environment-related issues for continuing such a fiscal relief.

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PTI

New Delhi

February 10, 2010

UPDATED: February 10, 2010 16:23 IST

Union Development of North Eastern Region (DONER) Minister B.K. Handique has sought continuation of 50 per cent excise-duty waiver for four state-run oil refineries in Assam for their long-term "sustenance" and "viability".

In a letter to Finance Minister Pranab Mukherjee ahead of the Budget 2010-11, Handique also cited the slackening demand of the oil products, logistics-cost and environment-related issues for continuing such a fiscal relief.

"I request you to kindly ensure continuation of the 50 per cent excise duty relied to the North East refineries for their long-term sustenance and viability during the year 2010-11 onwards as well," he said in the letter.

To support operations of the four refineries - Digboi refinery, Numaligarh refinery, Guwahati refinery and Bongaigaon refinery, the government had announced 50 per cent excise duty waiver on different oil products since long back which got extension in many union Budgets.

"As you are aware, this situation has not changed much and would continue in future as well due to inadequate availability of indigenous crude oil, refineries in NE are not in a position to operate at their rated capacities.

"To meet the requirement of crude oil, around 1.5 million tonnes of Ravva crude is brought from the Krishna-Godavari basin to Bongaigaon at a substantial additional transportation cost which is shared by all the four NE refineries," he said.

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